Sharia Economics

What is the main principle of Islamic banking?

• Operate in accordance with Sharia law

• Follow government regulations

• Ignore ethical considerations

• Maximize profits at any cost

What is the significance of Zakat and charity in Sharia economics?

• They are only practiced during specific religious holidays

• They are considered as obligatory acts of worship and a means of redistributing wealth to those in need.

• They are considered as a form of investment for the wealthy

• They have no significance in Sharia economics

Explain the concept of a Halal economy.

• An economy based on the use of technology and automation

• An economy that prioritizes environmental sustainability over profit

• An economy that relies on bartering and trade instead of currency

• An economy that operates in accordance with Islamic law and principles, including the prohibition of interest and unethical business practices.

What are the key principles of Islamic finance?

• Unlimited interest rates

• Debt-based financing

• No ethical standards

• The key principles of Islamic finance include prohibition of interest (riba), risk-sharing, ethical and moral standards, and asset-backed financing.

How does wealth distribution work in Sharia economics?

• Based on the principles of Zakat, Sadaqah, and Waqf

• By allowing individuals to accumulate unlimited wealth

• Through government intervention and control

• By redistributing wealth equally among all citizens

What is the concept of an interest-free economy in Sharia economics?

• Encouragement of high interest rates

• Allowance of speculative trading

• Prohibition of Riba and emphasis on profit-sharing and risk-sharing

• Promotion of debt-based financing

How does Islamic banking differ from conventional banking?

• Islamic banking allows the payment and receipt of interest

• Islamic banking prohibits the payment or receipt of interest and uses profit-sharing and asset-based financing.

• Islamic banking does not have any specific rules or principles

• Islamic banking is not based on profit-sharing and asset-based financing

What are the main sources of funds for Islamic banks?

• Stock market investments, venture capital, and angel investors

• Credit card debt, mortgage loans, and payday loans

• Deposits, profit-sharing investment accounts, and equity financing

• Government grants, corporate bonds, and personal loans

How does Zakat contribute to the wealth distribution in Islamic society?

• Zakat is used to accumulate wealth for the affluent in Islamic society

• Zakat has no impact on wealth distribution in Islamic society

• Zakat helps in redistributing wealth by ensuring that a portion of the wealth of the affluent is given to the less fortunate in Islamic society.

• Zakat only benefits the wealthy in Islamic society

Explain the concept of Takaful in Islamic finance.

• Takaful is a system of individual insurance without any community involvement in Islamic finance.

• Takaful is a type of interest-based loan in Islamic finance.

• Takaful is a cooperative system of mutual insurance based on the principles of solidarity, mutual assistance, and cooperation in Islam.

• Takaful is a form of gambling prohibited in Islamic finance.